Meeting Dates. January 24, April 26, July 25, October 24, Page 1 of 19

Transcription

1 Click on a date below to see the minutes. To see the entire year's minutes, click on the first date. Once open, search within the document for a particular word or phrase, using the 'Find' feature or Ctrl+f. Meeting Dates January 24, April 26, July 25, October 24, Page 1 of 19

2 Return UNIVERSAL SERVICE ADMINISTRATIVE COMPANY RURAL HEALTH CARE COMMITTEE MEETING January 24, 2011 MINUTES The quarterly meeting of the Rural Health Care Committee (Committee) of the Universal Service Administrative Company () was held at s offices in Washington, D.C. on Monday, January 24, Dr. Jay Sanders, Committee Chair, called the meeting to order at 11:30 a.m. Eastern Time, with a quorum of six of the seven Committee members present (there is one vacancy): Anderson, D. Michael by telephone Barash, Scott Acting Chief Executive Officer Boyle, Anne Gillan, Joe Kragel, Dr. Peter Vice Chair by telephone Sanders, Dr. Jay Chair Mr. Wayne Jortner joined the meeting 11:32 a.m. Eastern Time. He did not vote on item a1. Other Board of Directors (Board) members and officers of the corporation present: Abshire, Dr. Sheryl Member of the Board Belden, Richard Chief Operating Officer Capozzi, David Acting General Counsel and Assistant Secretary Case, David Vice President of Finance, Chief Financial Officer and Assistant Treasurer England, Dr. William Vice President, Rural Health Care Division Feiss, Geoff Member of the Board Blackwell, Mel Vice President, Schools and Libraries Division Jacobs, Ellis Member of the Board Scott, Wayne Vice President of Internal Audit Talbott, Dr. Brian Member of the Board Others present for the meeting: NAME Anderson, Latoya Beard, Jay Betancourt, Laura Delmar, Teleshia Ellis, Tess Hughes, Jeff Iversen, Eric Lee, Jay COMPANY Page 2 of 19

3 NAME Lewis, Don McKinley, Larry Miller, Jack Nesbitt, Tom Nuzzo, Patsy Parry, John Permyakov, Andrey Reynolds, Daniel Rogers, Camelia Short, Don Smith, Chris Trew, Anne Marie Watterson, Stefani Wu, Bonnie COMPANY FCC Solix Solix ACTION ITEMS: a1. Approval of Rural Health Care Committee Meeting Minutes of October 25, On a motion duly made and seconded, the Committee approved the minutes, as written, of the Committee meeting of October 25, a2. Recommendation for Annual Election of Committee Chair and Vice Chair. Mr. Barash nominated Dr. Sanders to serve as Committee Chair and Dr. Kragel to serve as Committee Vice Chair. following resolution: RESOLVED, that the Rural Health Care Committee recommends that the Board of Directors elect Dr. Jay Sanders as Chair and Dr. Peter Kragel as Vice Chair of the Committee for a term that begins immediately upon the adoption of this resolution by the Board and ends when a successor to the Chair and/or Vice Chair has been elected, when the Chair or Vice Chair resigns from the Committee or the Board, is removed by resolution of the Board, or the Chair and/or Vice Chair s Board term expires. a3. Approval of 2nd Quarter 2011 and 2011 Annual Rural Health Care Support Mechanism Programmatic Budgets. Mr. Belden presented this item to the Committee, noting that the proposed budget is $1.5 million less than the amount proposed at the October Committee meeting. following resolutions: Page 3 of 19

4 RESOLVED, that the Rural Health Care Committee approves a 2nd Quarter 2011 Rural Health Care Support Mechanism budget of $2.9 million; and RESOLVED FURTHER, that the Rural Health Care Committee directs staff to submit a collection requirement of $2.6 million for Rural Health Care Support Mechanism administrative expenses in the required January 31, 2011 filing to the FCC on behalf of the Committee; and RESOLVED FURTHER, that the Rural Health Care Committee approves an annual 2011 Rural Health Care Support Mechanism budget of $11.8 million. a4. Approval of 2nd Quarter 2011 Rural Health Care Support Mechanism Demand Projection for the January 31, 2011 FCC Filing. Dr. England presented this item to the Committee. following resolution: RESOLVED, that the Rural Health Care Committee, having reviewed at its meeting on January 24, 2011, a summary of the 2nd Quarter 2011 Rural Health Care Support Mechanism demand estimate, including administrative costs, hereby directs staff to proceed with the required January 31, 2011 filing to the FCC. staff may make adjustments if the variance is equal to or less than $1.0 million, or may seek approval from the Rural Health Care Committee Chair to make adjustments if the variance is greater than $1.0 million but not more than $2.0 million. a5. Action on Two Internal Audit Division Rural Health Care Support Mechanism Beneficiary Audit Reports. Mr. Chris Lenhardt presented this item to the Committee. following resolution: RESOLVED, that the Rural Health Care Committee, having reviewed the Internal Audit Division Rural Health Care Support Mechanism Beneficiary Audit Reports labeled RH2010BE001 and RH2010BE002 together with management s responses thereto, accepts the recommendation of management and hereby deems such reports final. a6. Consideration of Rural Health Care and Schools and Libraries Program Support Services Contract. In accordance with the approved criteria and procedures for conducting Board and committee business in Executive Session, Mr. Capozzi recommended that discussion of this item be conducted in Executive Session because this matter relates to s procurement strategy and contract administration. Page 4 of 19

5 On a motion duly made and seconded, the Committee adopted the following resolution: RESOLVED, that the Rural Health Care Committee determines that consideration of the contract extension for the Rural Health Care and Schools and Libraries Program Support Services Agreement shall be conducted in Executive Session. a7. Miscellaneous. a7-1. Solicit ideas for the October 2010 Committee Agenda. Dr. Sanders reminded Committee members that they may offer suggestions for agenda items at each quarterly meeting. Ideas may be submitted to Dr. Sanders, Dr. Kragel, Mr. Barash or Dr. England between quarterly meetings. a7-2. Board Materials. Mr. Barash requested the Committee provide feedback regarding the materials provided to the Board and committees. INFORMATION ITEMS: i1. Rural Health Care Support Mechanism Update. Dr. England presented this item to the Committee, noting that: has received 3,890 FCC Form 465 applications and 2,989 FCC Form 466/466- A packets for Funding Year RHC Program staff continues to work closely with Information Technology (IT) staff to develop and implement system enhancements to increase application processing automation and operating efficiency. In response to the FCC Notice of Proposed Rulemaking (NPRM) to create new broadband support mechanisms for the RHC Program, RHC Program staff has begun major revisions of current forms and proposals for system modernization. There were nine RHC Program beneficiary appeals received this quarter, primarily resulting from administrative office denials, competitive bidding violations, and disagreements with committed funding amounts. Of the nine appeals received, two were resolved and five prior appeals were resolved, leaving 16 currently under review. RHC Program staff continues outreach efforts, including several conference exhibition opportunities and a highly rated training for primary and Pilot program participants. staff has engaged in significant planning efforts for 2011, including preparing a comprehensive outreach plan and beginning the process of updating the RHC portion of the web site. The Payment Quality Assurance (PQA) Program is underway for RHC Program beneficiaries. The Universal Service Support Mechanism Beneficiary and Page 5 of 19

6 USF Contributor Compliance Audit Program (BCAP) will be implemented for RHC Program beneficiaries in i2. Rural Health Care Pilot Program Update. Dr. England presented this item to the Committee, noting that during 3rd Quarter 2010: posted eight Form 465 packages representing seven projects, issued 23 funding commitments totaling $29.8 million, and disbursed $8.68 million. Pilot Program staff verified the eligibility of approximately 155 Health Care Providers participating in Pilot Program networks. There were no appeals from Pilot Program beneficiaries. At 12:01 p.m. Eastern Time, on a motion duly made and seconded, the Committee moved into Executive Session for the purpose of discussing the confidential and proprietary items noted above. The Committee then recessed until 12:06 p.m. Eastern Time, at which time it reconvened in Executive Session. EXECUTIVE SESSION: a6. Consideration of Rural Health Care and Schools and Libraries Program Support Services Contract. Mr. Barash presented this item to the Committee. following resolutions with Dr. Sanders abstaining: RESOLVED, that the Rural Health Care Committee accepts management s recommendation and hereby approves an extension to the contract between and Solix, Inc. under the terms set forth by management in this issue paper for Rural Health Care and Schools and Libraries Program support services for the period July 1, 2011 through June 30, 2012, along with a one-year option to be utilized, if necessary, to support the transition of operational support services to a new vendor; and RESOLVED FURTHER, that management is hereby authorized to finalize the terms and conditions of the proposed agreement, and upon receiving FCC approval, execute the proposed contract extension with Solix, Inc. and proceed with its implementation. At 12:28 p.m. Eastern Time, on a motion duly made and seconded, the Committee adjourned from Executive Session and immediately reconvened in Open Session, at which time, Dr. Sanders reported that the Committee took action on item a6 above in Executive Session. On a motion duly made and seconded, the Committee adjourned at 12:29 p.m. Eastern Time. /s/ David A. Capozzi Assistant Secretary Page 6 of 19

7 Return UNIVERSAL SERVICE ADMINISTRATIVE COMPANY RURAL HEALTH CARE COMMITTEE MEETING April 26, 2011 MINUTES The quarterly meeting of the Rural Health Care Committee (Committee) of the Universal Service Administrative Company () was held at s offices in Washington, D.C. on Tuesday, April 26, Dr. Jay Sanders, Committee Chair, called the meeting to order at 11:30 a.m. Eastern Time, with all seven Committee members present (there is one vacancy): Anderson, D. Michael Barash, Scott Acting Chief Executive Officer Gillan, Joe Jimenez, Jose Jortner, Wayne Kragel, Dr. Peter Vice Chair Sanders, Dr. Jay Chair Other Board of Directors (Board) members and officers of the corporation present: Belden, Richard Chief Operating Officer Bergmann, Scott Member of the Board Capozzi, David Acting General Counsel and Assistant Secretary Case, David Vice President of Finance, Chief Financial Officer and Assistant Treasurer England, Dr. William Vice President, Rural Health Care Division Feiss, Geoff Member of the Board Jacobs, Ellis Member of the Board Mitchell, Randy Member of the Board Scott, Wayne Vice President of Internal Audit Talbott, Dr. Brian Board Chair Others present for the meeting: NAME Beard, Jay Betancourt, Laura Delmar, Teleshia Ellis, Tess Hughes, Jeff Iversen, Eric Lewis, Don Machcinski, Thad Miller, Jack Nuzzo, Patsy COMPANY FCC Solix Page 7 of 19

8 NAME Permyakov, Andrey Reynolds, Daniel Rock, Anil Rodriguez, Jose Rogers, Camelia Sansbury, Cherice Short, Don Skadin, Andy Watterson, Stefani Yee, Kim COMPANY FCC FCC FCC ACTION ITEMS: a5. Approval of Rural Health Care Committee Meeting Minutes of January 24, On a motion duly made and seconded, the Committee approved the minutes, as written, of the Committee meeting of January 24, a6. Approval of 3rd Quarter 2011 and Revised 2011 Annual Rural Health Care Support Mechanism Programmatic Budgets. Mr. Belden presented this item to the Committee. following resolutions: RESOLVED, that the Rural Health Care Committee approves a 3rd Quarter 2011 Rural Health Care Support Mechanism budget of $3.1 million; and RESOLVED FURTHER, that the Rural Health Care Committee directs staff to submit a collection requirement of $3.1 million for Rural Health Care Support Mechanism administrative expenses in the required May 2, 2011 filing to the FCC on behalf of the Committee, and RESOLVED FURTHER, that the Rural Health Care Committee approves a revised annual 2011 Rural Health Care Support Mechanism budget of $11.8 million. a7. Approval of 3rd Quarter 2011 Rural Health Care Support Mechanism Demand Projection for the May 2, 2011 FCC Filing. Dr. England presented this item to the Committee. In response to a question from Mr. Jimenez, Dr. England reported that the growth in the primary program is related to more health care providers engaging in telehealth, increased outreach, and funding of larger amounts of bandwidth. following resolution: Page 8 of 19

9 RESOLVED, that the Rural Health Care Committee, having reviewed at its meeting on April 26, 2011, a summary of the 3rd Quarter 2011 Rural Health Care Support Mechanism demand estimate, including administrative costs, hereby directs staff to proceed with the required May 2, 2011 filing to the FCC. staff may make adjustments if the variance is equal to or less than $1.0 million, or may seek approval from the Rural Health Care Committee Chair to make adjustments if the variance is greater than $1.0 million but not more than $2.0 million. a8. Action on 11 Internal Audit Division Rural Health Care Support Mechanism Beneficiary Audit Reports. Mr. Chris Smith, Manager, Internal Audit Division, presented this item to the Committee. following resolution: RESOLVED, that the Rural Health Care Committee, having reviewed the Internal Audit Division Rural Health Care Support Mechanism Beneficiary Audit Reports listed in Exhibit I to the issue paper together with management s responses thereto, accepts the recommendation of management and hereby deems such reports final. a5. Miscellaneous. Solicit ideas for the July 2011 Committee Agenda. Dr. Sanders reminded Committee members that they may offer suggestions for agenda items at each quarterly meeting. Ideas may be submitted to Dr. Sanders, Dr. Kragel, Mr. Barash or Dr. England between quarterly meetings. INFORMATION ITEMS: i1. Rural Health Care Support Mechanism Update. Dr. England presented this item to the Committee, noting that: has received 4,148 FCC Form 465 applications and 4,846 FCC Form 466/466- A packets for Funding Year RHC Program staff continues to work closely with Information Technology (IT) staff to develop and implement system enhancements to increase application processing automation and operating efficiency. In response to the FCC Notice of Proposed Rulemaking (NPRM) to create new broadband support mechanisms for the RHC Program (FCC ), RHC Program staff has begun major revisions of current forms and has begun a comprehensive system modernization effort. There were seven RHC Program beneficiary appeals received this quarter, primarily resulting from administrative office denials, competitive bidding violations, and Page 9 of 19

10 disagreements with committed funding amounts. Twelve appeals from prior quarters were resolved, leaving 14 currently under review. RHC Program staff continues outreach efforts, and has engaged in significant planning efforts for 2011, including preparing a comprehensive outreach plan and beginning the process of updating the RHC portion of the web site. The Payment Quality Assurance (PQA) Program is underway for RHC Program beneficiaries. The first round of the Beneficiary and Contributor Audit Program (BCAP) audits were completed and are reported in this quarter. i2. Rural Health Care Pilot Program Update. Dr. England presented this item to the Committee, noting that during 1st Quarter 2011: posted 15 Form 465 packages representing nine projects, issued 11 funding commitments totaling $25.5 million, and disbursed $18.4 million. Pilot Program staff verified the eligibility of approximately 357 health care providers (HCPs) participating in Pilot Program networks. There were no appeals from Pilot Program beneficiaries. In response to questions concerning s implementation of recommendations made in the November 2010 GAO report on the Rural Health Care Support Mechanism (GAO 11-27), Dr. England suggested that the Committee discuss this matter in Executive Session. Mr. Capozzi recommended that, in accordance with the approved criteria and procedures for conducting Board and committee business in Executive Session, discussion of s plans relating to implementing recommendations from the GAO report should be conducted in Executive Session because such discussion relates to s internal rules and procedures and s procurement strategy and contract administration. On a motion duly made and seconded, the Committee adopted the following resolution: RESOLVED, that the Rural Health Care Committee determines that discussion of implementing recommendations suggested by the November 2010 GAO report on the Rural Health Care Support Mechanism (GAO 11-27) shall be conducted in Executive Session. i3. Information on Rural Health Care and Schools and Libraries Program Support Services Contract. In accordance with the approved criteria and procedures for conducting Board and committee business in Executive Session, Mr. Capozzi recommended that discussion of this item be conducted in Executive Session because this matter relates to s procurement strategy and contract administration. Page 10 of 19

11 On a motion duly made and seconded, the Committee adopted the following resolution: RESOLVED, that the Rural Health Care Committee determines that consideration of the contract extension for the Rural Health Care and Schools and Libraries Program Support Services Agreement shall be conducted in Executive Session. At 12:18 p.m. Eastern Time, on a motion duly made and seconded, the Committee moved into Executive Session for the purpose of discussing the confidential and proprietary items noted above. EXECUTIVE SESSION: i3. Information on Rural Health Care and Schools and Libraries Program Support Services Contract. Mr. Barash presented this item to the Committee. i4. Miscellaneous. Implementation of Recommendations from the Rural Health Care Government Accountability Office (GAO) Report. Dr. England presented this item to the Committee. At 12:54 p.m. Eastern Time, on a motion duly made and seconded, the Committee adjourned from Executive Session and immediately reconvened in Open Session, at which time, Dr. Sanders reported that the Committee discussed items i3 and i4 above in Executive Session. On a motion duly made and seconded, the Committee adjourned at 12:55 p.m. Eastern Time. /s/ David A. Capozzi Assistant Secretary Page 11 of 19

12 Return UNIVERSAL SERVICE ADMINISTRATIVE COMPANY RURAL HEALTH CARE COMMITTEE MEETING July 25, 2011 MINUTES The quarterly meeting of the Rural Health Care Committee (Committee) of the Universal Service Administrative Company () was held at s offices in Washington, D.C. on Monday, July 25, Dr. Jay Sanders, Committee Chair, called the meeting to order at 11:39 a.m. Eastern Time, with all eight Committee members present. Anderson, D. Michael Barash, Scott Acting Chief Executive Officer Gillan, Joe Jimenez, Jose Jortner, Wayne Kragel, Dr. Peter Vice Chair Mitchell, Randy Sanders, Dr. Jay Chair Other Board of Directors (Board) members and officers of the corporation present: Abshire, Sheryl Member of the Board Belden, Richard Chief Operating Officer Bergmann, Scott Member of the Board Bryant, Dr. Anne Member of the Board Campbell, Anne Member of the Board Capozzi, David Acting General Counsel and Assistant Secretary Case, David Vice President of Finance, Chief Financial Officer and Assistant Treasurer Feiss, Geoff Member of the Board Greiner, Colleen, Vice President and Chief Information Officer Scott, Wayne Vice President of Internal Audit Talbott, Dr. Brian Board Chair Others present for the meeting: NAME Beard, Jay Bui, Brandon Costa, Paloma Delmar, Teleshia Ellis, Tess Iversen, Eric Lewis, Don Miller, Jack Molson, Adam COMPANY FCC Solix Page 12 of 19

13 NAME Nuzzo, Patsy Permyakov, Andrey Reynolds, Daniel Rogers, Camelia Short, Don Skadin, Andy Smith, Chris Theodoropoulos, Nikoletta Watterson, Stefani COMPANY FCC ACTION ITEMS: a9. Approval of Rural Health Care Committee Meeting Minutes of April 26, On a motion duly made and seconded, the Committee approved the minutes, as written, of the Committee meeting of April 26, a10. Approval of 4th Quarter 2011 and Revised 2011 Annual Rural Health Care Support Mechanism Programmatic Budgets. Mr. Belden presented this item to the Committee. following resolutions: RESOLVED, that the Rural Health Care Committee approves a 4th Quarter 2011 Rural Health Care Support Mechanism budget of $3.0 million; and RESOLVED FURTHER, that the Rural Health Care Committee directs staff to submit a collection requirement of $3.0 million for Rural Health Care Support Mechanism administrative expenses in the required August 2, 2011 filing to the FCC on behalf of the Committee, and RESOLVED FURTHER, that the Rural Health Care Committee approves a revised annual 2011 Rural Health Care Support Mechanism budget of $11.8 million. a11. Approval of 4th Quarter 2011 Rural Health Care Support Mechanism Demand Projection for the August 2, 2011 FCC Filing. Mr. Belden presented this item to the Committee. following resolution: Page 13 of 19

14 RESOLVED, that the Rural Health Care Committee, having reviewed at its meeting on July 25, 2011, a summary of the 4th Quarter 2011 Rural Health Care Support Mechanism demand estimate, including administrative costs, hereby directs staff to proceed with the required August 2, 2011 filing to the FCC. staff may make adjustments if the variance is equal to or less than $1.0 million, or may seek approval from the Rural Health Care Committee Chair to make adjustments if the variance is greater than $1.0 million but not more than $2.0 million. a4. Miscellaneous. Solicit ideas for the October 2011 Committee Agenda. Dr. Sanders reminded Committee members that they may offer suggestions for agenda items at each quarterly meeting. Ideas may be submitted to Dr. Sanders, Dr. Kragel, Mr. Barash or Dr. England between quarterly meetings. INFORMATION ITEMS: i1. Rural Health Care Support Mechanism Update. Mr. Belden presented this item to the Committee, noting that: received 3,602 form 465s for Funding Year received 4,283 FCC Forms 465 and 9,448 FCC Form 466/466-A packets for Funding Year 2010, which closed on June 30, RHC Program staff continues to work closely with Information Technology (IT) staff on system enhancements to increase application processing and operational efficiency. With the release of the FCC s Notice of Proposed Rulemaking (NPRM) to create new broadband support mechanisms for the RHC Program (FCC ), RHC Program staff is nearing completion of major revisions to the existing Primary program forms. Four RHC Primary Program beneficiary appeals were received this quarter, bringing the total number of open appeals to 14. RHC Program staff continues to achieve the goals outlined in the 2011 outreach plan, including a complete overhaul of the RHC portion of the web site, new video tutorials, webinars, and conferences. The Payment Quality Assurance (PQA) Program continues for RHC Program beneficiaries. i2. Rural Health Care Pilot Program Update. Mr. Belden presented this item to the Committee, noting that during 2nd Quarter 2011: Page 14 of 19

15 posted 13 Form 465 packages representing 12 projects, issued 19 funding commitments totaling $12.4 million, and disbursed $15.0 million. Pilot Program staff verified the eligibility of approximately 461 health care providers (HCPs) participating in Pilot Program networks. One Pilot Project filed an appeal with during this quarter. i3. Information on Rural Health Care and Schools and Libraries Program Support Services Contract. In accordance with the approved criteria and procedures for conducting Board and committee business in Executive Session, Mr. Capozzi recommended that discussion of this item be conducted in Executive Session because this matter relates to s procurement strategy and contract administration. On a motion duly made and seconded, the Committee adopted the following resolution: RESOLVED, that the Rural Health Care Committee determines that discussion of the Rural Health Care and Schools and Libraries Program support services contract shall be conducted in Executive Session. At 12:26 p.m. Eastern Time, on a motion duly made and seconded, the Committee moved into Executive Session for the purpose of discussing the confidential and proprietary items noted above. EXECUTIVE SESSION: i3. Information on Rural Health Care and Schools and Libraries Program Support Services Contract. Mr. Barash presented this item to the Committee. At 12:29 p.m. Eastern Time, on a motion duly made and seconded, the Committee adjourned from Executive Session and immediately reconvened in Open Session, at which time, Dr. Sanders reported that the Committee discussed items i3 above in Executive Session. On a motion duly made and seconded, the Committee adjourned at 12:30 p.m. Eastern Time. /s/ David A. Capozzi Assistant Secretary Page 15 of 19

16 Return UNIVERSAL SERVICE ADMINISTRATIVE COMPANY RURAL HEALTH CARE COMMITTEE MEETING October 24, 2011 MINUTES The quarterly meeting of the Rural Health Care Committee (Committee) of the Universal Service Administrative Company () was held at s offices in Washington, D.C. on Monday, October 24, Dr. Jay Sanders, Committee Chair, called the meeting to order at 11:28 a.m. Eastern Time, with all eight Committee members present. Anderson, D. Michael Barash, Scott Acting Chief Executive Officer Gillan, Joe Jimenez, Jose Jortner, Wayne Kragel, Dr. Peter Vice Chair Mitchell, Randy Sanders, Dr. Jay Chair Other Board of Directors (Board) members and officers of the corporation present: Abshire, Sheryl Member of the Board Belden, Richard Chief Operating Officer Blackwell, Mel Vice President, Schools and Libraries Division Capozzi, David Acting General Counsel and Assistant Secretary Case, David Vice President of Finance, Chief Financial Officer and Assistant Treasurer Feiss, Geoff Member of the Board Greiner, Colleen, Vice President and Chief Information Officer Scott, Wayne Vice President of Internal Audit Talbott, Dr. Brian Board Chair Others present for the meeting: NAME Anderson, Latonya Beard, Jay Betancourt, Laura Delmar, Teleshia Ellis, Tess Falkowitz, Ed Iversen, Eric McCornac, Carolyn McKinley, Henry Miller, Jack Molson, Adam COMPANY FCC Solix Page 16 of 19

17 NAME Nuzzo, Patsy Parry, John Reynolds, Daniel Rogers, Camelia Sansbury, Cherice Sinkfield, David Smith, Chris Waldrum, Stuart Watterson, Stefani COMPANY Solix Solix ACTION ITEMS: a12. Approval of Rural Health Care Committee Meeting Minutes of July 25, On a motion duly made and seconded, the Committee approved the minutes, as written, of the Committee meeting of July 25, a13. Approval of 1st Quarter 2012 Rural Health Care Support Mechanism Programmatic Budget and Information on the Estimated 2012 Annual Budget. Mr. Belden presented this item to the Committee. following resolutions: RESOLVED, that the Rural Health Care Committee approves a 1st Quarter 2012 Rural Health Care Support Mechanism programmatic operations budget of $2.6 million; and RESOLVED FURTHER, that the Rural Health Care Committee directs staff to submit a collection requirement of $2.6 million for Rural Health Care Support Mechanism administrative expenses in the required November 2, 2011 filing to the FCC on behalf of the Committee. a14. Approval of 1st Quarter 2012 Rural Health Care Support Mechanism Demand Projection for the November 2, 2011 FCC Filing. Mr. Belden presented this item to the Committee. following resolution: Page 17 of 19

18 RESOLVED, that the Rural Health Care Committee, having reviewed at its meeting on October 24, 2011, a summary of the 1st Quarter 2012 Rural Health Care Support Mechanism demand estimate, including administrative costs, hereby directs staff to proceed with the required November 2, 2011 filing to the FCC. staff may make adjustments if the variance is equal to or less than $1.0 million, or may seek approval from the Rural Health Care Committee Chair to make adjustments if the variance is greater than $1.0 million but not more than $2.0 million. a4. Miscellaneous. Solicit ideas for the January 2012 Committee Agenda. Dr. Sanders reminded Committee members that they may offer suggestions for agenda items at each quarterly meeting. Ideas may be submitted to Dr. Sanders, Dr. Kragel, Mr. Barash or Mr. Belden between quarterly meetings. INFORMATION ITEMS: i1. Rural Health Care Support Mechanism Update. Mr. Belden presented this item to the Committee, noting that: has received 4,148 Form 465s and 2,108 packets (Form 466, 466-A, and supporting documentation) for Funding Year 2011 to date. This is a 14% increase from the number of Form 465s and a 30% increase in packets received for Funding Year 2010 at this time last year. The first funding commitment letters (FCL) for Funding Year 2011 were released in mid-september; the earliest issuance of FCLs in the life of the program. Funding Year 2010 ended with a nearly 16% increase in packets received over funding year This is the greatest year-to-year packet increase in the life of the RHC program. More than 9,500 packets were received, up from 8,258 at the end of Funding Year Over 1,000 packets were received in September. This is the first time RHC has received this many packets in a month that was not at the end of a funding year. RHC Program staff continues to work closely with Information Technology (IT) staff on the development of a new IT system that will increase operational, reporting, and processing efficiency. RHC Program staff continues to meet with the FCC every two weeks to discuss open issues. 13 RHC Program beneficiary appeals were resolved this quarter, lowering the queue from 17 at the start of 2011 to seven, and greatly decreasing the average appeal processing time. Page 18 of 19

19 RHC Program staff continues to achieve the goals outlined in the 2011 Outreach Plan, including a complete overhaul of the RHC pages of the web site, and development of new video tutorials, webinars, and conference presentations. i2. Rural Health Care Pilot Program Update. Mr. Belden presented this item to the Committee, noting that during 3rd Quarter 2011: posted nine Form 465 packages representing seven projects, issued 49 funding commitments totaling $49.5 million, and disbursed $7.9 million. Pilot Program staff verified the eligibility of approximately 422 health care providers (HCPs) participating in Pilot Program networks. One Pilot appeal was decided during this quarter. i3. Schools and Libraries and Rural Health Care Program Support Services Solicitation Update. In accordance with the approved criteria and procedures for conducting Board and committee business in Executive Session, Mr. Capozzi recommended that discussion of this item be conducted in Executive Session because this matter relates to s procurement strategy and contract administration. On a motion duly made and seconded, the Committee adopted the following resolution: RESOLVED, that the Rural Health Care Committee determines that discussion of the Rural Health Care and Schools and Libraries Program support services contract shall be conducted in Executive Session. At 12:16 p.m. Eastern Time, on a motion duly made and seconded, the Committee moved into Executive Session for the purpose of discussing the confidential and proprietary item noted above. EXECUTIVE SESSION: i3. Schools and Libraries and Rural Health Care Program Support Services Solicitation Update. Mr. Barash presented this item to the Committee. At 12:19 p.m. Eastern Time, on a motion duly made and seconded, the Committee adjourned from Executive Session and immediately reconvened in Open Session, at which time, Dr. Sanders reported that the Committee discussed item i3 above in Executive Session. On a motion duly made and seconded, the Committee adjourned at 12:20 p.m. Eastern Time. /s/ David A. Capozzi Assistant Secretary Page 19 of 19